In The Matter ofQPACIFIC THRIFT AND LOANCOMPANYWOODLAND HILLS, CALIFORNIA
(Insured State Nonmember Institution)ORDER TO CEASE AND DESISTFDIC-94-157b
Pacific Thrift and Loan Company, Woodland Hills, California ("Insured Institution"), having been advised of its right to a Notice of Charges and of Hearing detailing the unsafe or unsound banking practices alleged to have been committed by the Insured Institution and of its right to a hearing on the alleged charges under section 8(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b)(1), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") with counsel for the Federal Deposit Insurance Corporation ("FDIC"), dated September 27, 1994, whereby solely for the purpose of this proceeding and without admitting or deny-
{{12-31-94 p.C-3812}}ing the alleged charges of unsafe or unsound banking practices, and Insured Institution consented to the issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.
The FDIC considered the matter and determined that it had reason to believe that the Insured Institution had engaged in unsafe or unsound banking practices. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

IT IS HEREBY ORDERED, that the Insured Institution, its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns cease and desist from the following unsafe and unsound banking practice:
(a) operating in such a manner as to produce low earnings.
IT IS FURTHER ORDERED, that the Insured Institution, its institution-affiliated parties, and its successors and assigns, take affirmative action as follows:

[.1] 1. As of the effective date of this ORDER, the Insured Institution shall refrain from opening any additional offices, including loan production offices without the prior written approval of the Regional Director of the FDIC's San Francisco Regional Office ("Regional Director").

[.2] 2. Within 60 days from the effective date of this ORDER, the Insured Institution shall formulate and implement a written profit plan. This plan shall be forwarded to the Regional Director and to the Commissioner for review and comment and shall address, at a minimum, goals and strategies for improving and sustaining the earnings of the Insured Institution, including:

a. an identification of the major areas in, and means by which, the board of directors will seek to improve the Insured Institution's operating performance;
b. realistic and comprehensive budgets;
c. a budget review process to monitor the income and expenses of the Insured Institution to compare actual figures with budgetary projections; and
d. a description of the operating assumptions that form the basis for, and adequately support, major projected income and expense components.

[.3] 3. Within 60 days from the effective date of this ORDER, the Insured Institution shall provide to the Regional Director a study which shall include documentation and an analysis of the operations and profitability of its loan production office opened in June of 1994 in the State of Washington.
This ORDER shall become effective ten (10) days from the date of its issuance.
The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
Dated at San Francisco, California, this 13th day of October, 1994.
Pursuant to delegated authority.